It’s almost impossible these days to avoid using some type of credit card, and while you may be able to get by just using checks and cash, it probably won’t make your life very convenient. Generally, there are three choices to consider when exploring credit card options, which include traditional credit cards, debit cards, and prepaid cards. They might all offer their own benefits, but consider all the extra advantages that prepaid cards can offer that traditional credit cards and debit cards don’t. The following are some examples of the different ways that prepaid cards can be much more beneficial:
Sure, charging up a storm on a credit card with a decent credit line might allow you to go on that dream trip you’ve always wanted to take or to furnish your new home, but you know what they say: it’s all fun and games until your statement arrives. You’ll eventually have to pay that money back, and the longer you wait, the more in debt you’ll get. A debt won’t just disappear; it lingers for many years, and in the meantime, you face a lot of consequences. From plummeting credit scores to wage garnishment, debt is just not something you want to mess with. If you are able to pay your bills by making those minimum payments, you’ll avoid getting in trouble (i.e. judgments), but depending on how much you charged, you’ll still be in debt. Most of your small payments will go towards interest, which really increases the costs of your purchases over the years. That hamster you bought at the pet store and charged on your credit card, for example, certainly won’t just cost $10 by the time it’s finally paid off.
Less stress and fewer bills
Remember back in the day when people sent each other real letters via postal mail, and other fun stuff, like birthday cards? Well, those days are pretty much gone. If you dread opening up your mailbox because all it ever seems to contain is bills, why do you want to add to that? Why receive more bills in the mail and why add to that stress? Although you can opt to receive a statement with a prepaid card, which simply reminds you of all the awesome things you purchased and can help you track your spending, there is no bill—because you already paid for it!
Inexpensive and easy to qualify for
If your credit score is shot, qualifying for a traditional credit card might be next to impossible. And unless you have amazing credit, you’ll likely end up with a credit card with a high APR, if you are eligible for a traditional credit card. In order to have a debit card, you’ll need a bank account. Not all consumers are eligible to open up checking accounts, or they might be required to keep their balance above a certain amount if they want to avoid being charged a monthly maintenance fee. In the end, prepaid cards often cost much less than these other two options, and they are also super simple to qualify for as long as you have a deposit for your spending money.
From shopping online to restaurant visits, there is always a risk of your financial information getting stolen. If someone gets a hold of your debit card information and makes a ton of unauthorized charges, it can be a total nightmare. After all, this is money that is coming straight from your bank account, and you may never see that money again. With a traditional credit card, it can be a little bit easier to dispute the charges and get them reversed, but it’s not always simple. Not only is it a hassle to deal with, especially if a lot of damage has been done, but you may not be able to dispute all of the unauthorized transactions. A prepaid card, however, can be the safest payment method of all. If you only load a small amount of money at a time, and only when you know you’re about to charge on it, there is much less at risk.
Are you interested in opening up your own prepaid card? Visit our prepaid card section for more information on the prepaid cards we offer and to get your application process started today!